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Business plan - Financial Management in business and the use of ICT.

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Introduction

Unit 2 Business plan - Assignment 3 Financial Management in business The importance of a financial plan is making sure that as a business you are prepared for any possible outcomes. By making a plan then the business would get a brief idea of whether they are likely to make a profit or not. Also it would allow them to make any adjustments to ensure they make the most amount of money possible and avoid any unexpected problems. It gives an idea of the amount of money the business is likely to have at the end of the year. Start up costs The relevance of start up costs are that they need to be kept to a minimum so that you still have enough money to run your business, however you also need to buy good quality products to invest in your business so it works out better in the long run, both in the quality in the service and that you wont have to replace things as often. As a business you must also need to price items well so that the customer is willing to pay the price as well as also being able to break even, If the business puts their prices too low then they will not be able to pay back the money that had to use to start up their business and this will result in a loss, On the other hand if the business puts the prices too high then the customer numbers will decrease to due less people wanting to pay that amount, which will also result in less money and the business will lose out. ...read more.

Middle

Unit 2 - Assignment 4 The use of ICT and software is essential in the running of a business. The business relies on good, well run software to ensure that the business is run and managed to the best it can. Examples of this are when processing information and certain types of documents, making calculations, keeping records of money and financial information. Spread sheets are used in businesses to record things such as cash flow and profit forecasting, budgeting and break even analysis. Word processing and data base software can be used to lead to improvements in business and can also make it simpler and a more effective to manage certain aspects of the business. It also means a business can record information in many different areas. Businesses also use specialist software for example accounting packages; use the internet as a source of research and communication applications such as email as a way of communicating and advertising, and E-commerce as a method of training employees. In the running of a business you have to make sure that as a business, you appreciate any legal or corporate issues which are associated with using ICT, such as the influence of data protection acts which mean that you cannot share private information such as customer information. Abiding by health and safety issues where staff must work safely when using software in order to not harm to themselves and protect the computer software from viruses etc. Business software is important in the running and success of a business and there for the company has to make sure they have the best possible software to suit what they need it for. ...read more.

Conclusion

A pay roll package would help the business by automatically setting into a document the amount a worker should be paid in a certain month, by working on the figures that the employer has put in. e.g. Tax number, pension etc. Also having design programmes such as Macromedia Fireworks and Photoshop would be good and more of an effective way of designs such things as templates for cake designs and the menu designs for the business. My business will also need advertising; this could be on the internet, as a paid advertisement on a popular site such as Facebook or Myspace or even a advertisement in the local newspaper. With any software or computers that you get, the company will also have to buy some sort of anti virus protection like Norton or Avg. This would prevent the computer getting any viruses and can also prevent any sites which could contain other things which count get into the system and steal any information which the business needs. Which if leaked could put the company into a lot of trouble or risk. All of the software mentioned comes at prices where the business will have to find the best and more effective of each of the packages which would help benefit the company whilst also trying to get the cheapest option so that the business doesn't lose money on buying software that the business doesn't necessarily need. Also as software could be quite hard to understand workers who will be using the software will need training to use it which will also be cost efficient. ?? ?? ?? ?? Andre Gibbs ...read more.

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